Asked by Yessenia Castro on May 16, 2024

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Financial measures such as ROI are generally better than nonfinancial measures of key success drivers such as customer satisfaction as leading indicators of future financial performance.

Financial Measures

Quantitative indicators used to assess a company's financial performance, including net income, return on investment, and earnings per share.

Nonfinancial Measures

Performance metrics that are not related to money but indicate other forms of organizational success, such as customer satisfaction or employee turnover rates.

Customer Satisfaction

The measure of how well a company's products or services meet or exceed customer expectations.

  • Analyze the impact of financial and nonfinancial measures on future financial performance.
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Antea SinanajMay 21, 2024
Final Answer :
False
Explanation :
Nonfinancial measures like customer satisfaction can be leading indicators of future financial performance, as they reflect underlying factors that drive financial outcomes. High customer satisfaction often leads to repeat business, positive word-of-mouth, and increased market share, which can improve financial performance over time.